SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Banking system's credit growth to slow down to 14% in financial year 2024-25: Crisil

Banking system's credit growth to slow down to 14% in financial year 2024-25: Crisil

28 May 2024 Evaluate

Expressing cautiousness over credit growth of Indian banking system, domestic rating agency Crisil has said that the banking system's credit growth will drop by 2 percentage points to 14 per cent in financial year 2024-25, as compared to 16 per cent growth in bank credit in financial year 2023-24. It said the slowdown can be attributed to lower GDP growth estimation at 6.8 per cent in FY25, as against 7.6 per cent in FY24, RBI measures like higher risk weights on unsecured loans and also a high base.

Admitting that the differential between the deposit and credit growth has reduced over the past year, the agency said slower deposit accretion can keep a check on credit growth. It was quick to add that the fundamental drivers of credit demand are broadly intact and a revival in private corporate capital expenditure (capex), especially towards the second half of fiscal 2025, can provide tailwinds as well. 

It said the corporate segment, which accounts for 45 per cent of the overall loans, is estimated to maintain the growth at 13 per cent in FY25, and added that retail growth will slow down to 16 per cent from 17 per cent in FY24. It said retail will remain the fastest-growing segment for banks, but will feel the drag of lower growth in unsecured consumer credit (25 per cent of retail credit) as banks realign their strategies following the regulatory stipulation of additional 25 percentage points risk weight and strengthen their underwriting processes to counter a potential rise in delinquencies. 

The relatively higher yields in unsecured consumer credit and, hence, the ability to absorb the higher capital charge, will limit the decline in retail growth. Growth in the Micro, Small and Medium Enterprises (MSME) segment (16 per cent of overall credit) is estimated to drop to 15 per cent from 19 per cent in FY24. Agricultural credit growth will remain linked to monsoon trends but should witness a moderation on the back of a strong fiscal 2024.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×